Why your obsession with fairness could be costing you millions in business and investing

I am from the UK, where fairness is almost a national sport. This isn’t a completely negative thing. It is great that old ladies don’t need to push in line, for example, because queuing is respected!

However, in business and investing, there are many things which are unfair, but are perfectly rational and profitable. Failing to accept an unfair situation, can cost people dear.

I was reading about an experiment that was done sometime last year. Some researchers from a university offered some participants $10,000 to climb a mountain.

The climb was about 1 hour long. Once they got to the top, the researchers told the participants that they had lied; now they would only be offering them $9,000 for the climb.

Now $9,000 is a lot of money for 1 hours work for almost everybody, but 65% of the people refused the money, and left with $0, because the situation wasn’t fair! Of course, the rational thing would have been to accept the money, when most people would have accepted even $1,000 at the bottom.

I have seen the same situation in business and investing. There are many things which are unfair, but perfectly rational and profitable.

Some examples;

  1. It is perfectly fair and rational to offer introducers more money for providing leads. Most firms offer introducers a small basic wage and a small incentive like 10% of the sale. Offering 50%-80%, without basic pay, may not be fair, because you are doing most of the work as the owner of the business, but it is rational. You are incentivizing them to work harder, whilst also protecting your cashflow as the business owner.
  2. You are a business owner, and you see somebody leave your company, even though you felt wronged by them. You approach them and offer them a fresh deal, as you have seen them succeed, after they left. This may not be fair. They wronged you in the past, but it may be rational, if they are now older, wiser and more talented than before.
  3. Now let’s give an example of a company employee. Negotiating a small 10% pay rise worth $5,000 and then reinvesting that pay rise in markets would make you $1M-$2M richer in the next 30 years assuming average stock market returns, but it may not be fair that you are payed $5,000 a year more than your co-workers. You only took 5 seconds out of your day to ask after all.
  4. Focusing on your top 5% of customers, cross-selling and up-selling them, and therefore earning more by doing less, is unfair on those that work harder than you, but perfectly rational.
  5. Making money from saving and investing from a young age, to take advantage of compounding, may not be fair. You aren’t working harder for the gains, after all. All you are doing is delaying gratification.
  6. Approaching your ex boss who fired you 2 years ago, or even 2 months ago, to see if you could collaborate is rational, and potentially profitable, if you can put pride aside.

And the best thing? Few will copy you. Unlike other ideas, profitable but unfair ideas are much less likely to be copied by others because most people have too much pride to implement the ideas, especially if they think it is unfair on themselves.

I spoke to an associate a few weeks ago who pledged he would never pay an introducer in his recruitment business 60% or more even if, quote, ‘it made me millions, because I am doing all the work!’.

So he would prefer to earn half, and keep his pride, and reassure himself that he is being fair.

Extra reading:

  1. Property vs stocks 
  2. How to get rich investing
  3. Why the wealthy spend less 

Elon Musk and taking risks

I was listening to an interesting interview with Elon Musk a few days ago.  He said that most people are too risk adverse even when they have nothing to lose in their 20s.

It reminded me of something I was reading online a few days after.  Many older people were answering the simple question; what do you wish you would have known at 20? Many answered they wish they had taken more risks.  

It got me thinking.  Most of the people I know who are 25, 28 or 32 who are doing very well took risks.  

A typical example is 2-3 recruiters I know.  They got a job with a low basic salary at 21-22 after graduation.  Then after 2-3 years of getting good at it, went to commission only or started their own company.

At 26-30, they were earning great money, with a better work-life balance than most people at the top consulting or law firms.

Most people would have been petrified to take such a risk, but what’s the worst that could have happened? My friend would have lost some money.

At 25-27, he could have applied for other jobs, and some interviewers would have been impressed, I am sure, about how proactive he was.

Let’s go further. Let’s say he would have lost $5,000 by failing as a commission only recruiter, as he lost his touch and still needed to pay his bills. He was only 23-25. He can make that money back; and besides most people waste much more than $5,000 on pointless consumption anyway.

Moreover, you can’t take away a client relationship vert easily. A salary can be taken away at any moment, especially in the private sector, but a client relationship built over time, can’t be taken away so easily. 

The same thing in investing.  Ironically, I have met many 25 year olds with only $5,000 to their name, who are more adverse to declines than 60 year olds.

This makes no sense.  There is very little chance markets will be down over a 40-50 year period; and besides, a 10% decline on $5,000 is only $500.  You probably spend that in daily life without even thinking. 

The keys to having a more balance view on risk are often:

  1. To distinguish between volatility and stability – too many people think something that is volatile is more risky. The opposite is true.  The person who is self-employed, and has 2-3 incomes, has a more volatile income. However, that person’s income is less likely to go to zero, compared to the person relying on 1 `non-volatile` income. Likewise, assets that are more volatile, like markets, have always outperform cash and bonds long-term. People make this mistake all the time. They speak about China having a `stable government` as opposed to a `low volatility government`, or `stock markets being unstable now`, when they really mean `highly volatile`. 
  2. Remember also that taking no risks is impossible.  
  3. There is no such thing as a free lunch. That job paying a non volatile income, especially if the income is high, will have 1000 candidates per 1 job. You will get told what to do all day, unless you are lucky. If you have a non volatile investment portfolio, you will end up poorer, you will just never see big declines.
  4. Doing nothing, taking no action, is usually more risky than doing something long-term. 
  5. A decline and a loss isn’t the same.  $10,000 invested in the S&P in 1941 would be worth $52 million today but there has been so many 50% declines along the way.
  6. Taking immediate action is one fo the best ways to overcome procrastination. Top performers get in the habit of taking immediate action.
  7. You will never get 100% information.  As soon as you have 80%, you have actionable information. Take the decision. In investing all you need to know is; a). What is the long-term performance of the funds; b). What is the cost; c). What’s the process.  Maybe 1-2 other things, but you get the point.  Half the questions people ask, or are worried about, are irrelevant.    
  8. If you are going to have loss aversion about anything, make it about time. Think about it. If you are paid $100 an hour, and you complain for 1 hour about some $5 fee your credit card company has levied, you are losing $95 even if you get it reimbursed. If you spend 5 hours a month, or 60 hours a year, checking your stock portfolio, you are losing time.

Extra reading:

  1. DIY Investors – why do they tend to fail?
  2. How to become rich by investing 
  3. Negotiation and wealth 

Why I fired some of my clients and so should you

One of the best pieces of business advice I was given a few years ago was about firing clients and defining an ideal client.

When people are new to an industry, they often want any clients. We all have to live, and put food on the table, after all. 

I was the same. I wasn’t picky before. And that is fine for the first few years, but over time, it makes sense to become more selective. 

Some of the most successful businesses in the world, after all, reject certain clients.  Some of the best nightclubs refuse to enter people with certain dress codes. 

Many companies are not flexible on price, for example lawyers and the fees they charge. 

Some companies actually fire clients. They cause too many problems, break too many rules and abuse a previously trusting relationship. They take up too much of your time, for little reward and payoff. 

Beyond that, going into business in any industry, a company and individual needs to picture their ideal client and be brave enough to say no to those that don’t fit that ideal.

For me, who are my ideal clients? Here is a list of what I look for in clients. If clients don’t meet these criteria, I refuse the business, as they will cause too many problems:

  1. They are focused on the long-term. They aren’t short-term investors.  At least 5 year horizons.  10 years+ is ideal.  A very long-term relationship lasting decades is most preferred. 
  2. They have at least $500 a month or $35,000 as a lump sum to invest – soon to be raised to $40,000.
  3. They are not cynics. This excludes many lawyers, journalists and several others who assume the world is a dangerous place, full of scams! It is human nature to like people who are more like yourself.  I don’t assume the worst.  I don’t read every piece of small print.  The reason is simple; my time is money and most people are intrinsically good. I tend to be most skeptical about how the media makes us all skeptics! Research has shown that if you lend money to a complete stranger, there is a 80%-90% chance they will pay back. The average person assumes the chance is only 50%. Crime is falling in most countries, but most people assume otherwise.  The point is, the very worst cases like scams are 1% of total cases.  People who assume otherwise before they are in, just cause more problems when they are clients.
  4. They understand the value of doing things online. Most face-to-face meetings are a waste of time and money. Things can be done cheaply and more efficient online. 
  5. They realize location isn’t important. This is linked to points 3 and 4. Somebody who is overly cynical likes to deal with somebody they know – maybe at the expat bar or another location – even if they deep down know better options may exist. This is the better safe than sorry idea. My ideal client understands the value of saving them time and money, by doing things online 
  6. They realize how you dress isn’t important. Pointless meetings, ties and business cards should have been discarded in the 1990s. 
  7. They realize the importance of time – they are proactive. They realize, in the words of the both Dale Carnegie and Sir Alex Ferguson, that if a decision is to be made, it should be made quickly. As soon as they have enough information to make a decision, they make it decisively, just like I do. They don’t procrastinate and think about things for weeks – also known as analysis paralysis. 

How about you and your industry, who are your ideal clients? Who causes 80% of your problems?

Being selective about these problem clients by refusing to take new ones in the first place, will solve many of your business problems.

Getting money out of China in 2019 + other expat destinations

This article will cover getting money out of China, and several other countries, in 2019.  It also discusses potential tax problems if you send too much money to your country of origin as an expat.

Please contact me at [email protected] or [email protected] if you have any questions about this article or financial planning questions in general. 

I have helped several individuals get money out of China, and several other countries, quickly and hassle free.  This is especially the case if they have a Visa or MasterCard, but I have also managed to do it for people in other situations.

Getting money out of China – Reddit – Quora

I wrote this article after reading a lot of misleading things on online Q/A websites. 

Why do Expats and locals want to get money out of China?

One of the biggest issues expats in China face in 20119 is getting money out of Mainland China.  Many expats come to China for relatively short term assignments, and few plan to stay for more than 10 years.  Even if they do, the majority do not want to contribute to a Chinese pension plan. 

Many Chinese returnees and other locals also face the same issues. With the trade war and a depreciating RMB, many local Chinese are also looking at ways to get RMB outside of China and into USD.

Indeed Bloomberg has reported on why so many people want to get money out of China, and the situation has become more and more apparent as 2018 draws to a close.

It is true that for relatively small amounts of money (less than 20,000RMB) it is possible to take it home with you without declaring it to customs on your next flight home.  Taking so much cash with you isn’t particularly safe though, and isn’t an option at all for larger amounts.

There are numerous ways you can send money out of China. This article will review some of the best options.

Is it sensible to delay with the trade war and other ongoing political issues?

With the current political climate, the RMB could fall much further.  Certainly most economist expect it to weaken further.  Besides, the banks in China give low interest rates like the rest of the world.  Leaving money in RMB in the bank is money to inflation and probably currency depreciation.

In 2018, several currencies have depreciated much more rapidly against the USD than the RMB, including in Turkey and various South American countries.  Nobody can know for sure what will happen in 2019 and the longer-term future, but a steep depreciation by the end of next year is a distinct possibility.

Already on October 31, the Chinese RMB to USD exchange rate was trading at 6.97, which is the weakest level since 2008.  If the Chinese Central Bank allows the RMB to depreciate past 7:1, a sharper depreciation may happen.  

Nobody knows the future. However, this uncertainty is probably one of the biggest reasons why the USD is strengthening in turbulent times.

Could the RMB recover?

Of course it could. It could even strengthen, but given the current situation, the overall trend seems downwards, especially against the USD.

Given that Trump’s election hopes partially ride on being `tough` on China, it is unlikely he will back down on the trade war, unless China gives considerable concessions. That seems unlikely, given rising nationalism in China.  

Getting money out of China Via Hong Kong in 2019

Some expats try to get RMB out of China through Hong Kong. However, some of the methods used to do so aren’t cost effective.  Time is also money, so taking a flight to Hong Kong from Shanghai, Shenyang or Beijing to get money out of China, doesn’t make any sense.

Even if you live in Shenzhen, going to HK will take a day.  Moreover, unless you have HKID, it isn’t always easy to open up a bank account. In which case you need to use a money changer, which doesn’t make any sense.  This is because you will be left with cash in your hand, and then you will still need to transfer the cash, and it isn’t easy or safe to change considerable amounts of money.  Assuming you are preaching the 20,000RMB allowance, you could also be stopped at customs using this method.  

Getting money out of China via Western Union in 2019

You could also send money out of China by Western Union.  One can see why this is an attractive option, because Western Union have branches even in small Chinese cities.  However, the fees and currency rates are terrible, meaning that you are often paying 7%-10% to send your money if you include the direct and indirect cost.

Western Union only charge $15-$30 for the transfer typically, but added to a bad currency rate, this a expensive option.  Companies similar to Western Union might say they are commission free, but the conversion rates are a killer.

Getting money out of China via Chinese Bank in 2019

Another way is via a bank account.  Banks in China typically have better currency rates than Western Union and their competitors in the West.   However, as a foreign-national, you often have a $500 per time limit.  This low limit, like Western Union, means it is also expensive, as even a $25 fee is 5% of the transfer, and then you have other small fees, such as the 1%-2% indirect currency charge.

If you have a close Chinese friend, they can send up to $50,000 a year to you.  By putting the money in their bank account, they can send money to you.  The ability to spend more money at once means the fees are lower.   As an example, if you send $10,000 per time, you may have a $30 one off bank fee.  Added to the 1%-2% exchange rate fee, indirectly it is costing you 1.3%-2.3%.  If you only send $2,000-$5,000, the charges could top 3%.

Ultimately, sending money to your home country isn’t always the best option and 1%-3% every time adds up.  Look at it this way.  If you are sending money home to contribute to a pension, you are paying 1%-3% before you add the fees for the investment.

Or another way to look at it is instead of investing $100,000, you may only have $97,000 to invest.  If your investments go up by 10%, that is the difference between $110,000 and $106,700!  Every year for 10 years, that really adds up – could be $50,000+ compounded.

That isn’t to mention there are certain ramifications of sending too much money home.  In the UK, as an example, you can only `​earn` 3,000 Sterling from gifts every year.  If you are using a Chinese friend to send money on your behalf, this may be considered a gift.  Even though they are essentially using your money, as you are just using them as a gateway to funnel your own money into the country, their name will appear as the sender.

Many banks automatically inform HMRC about any payments above 5,000 Sterling or any potential suspicious payments.  Even if you haven’t done anything wrong, too many payments from overseas gets flagged.  You may therefore need to prove you are really an expat, to avoid tax on the money.  Australians, Canadians and other expats face similar issues.

Sending money out of China via Bitcoin in 2019

It is possible to send money out of China using Bitcoin.  Needless to say, however, the highly volatile nature of bitcoin, which can fluctuate by 25% in a day, means that it shouldn’t be used to transfer money overseas.

Moreover, the Chinese Government is cracking down on Bitcoin payments.  In 2017, they banned Bitcoin exchanges, meaning it is difficult to buy and sell Bitcoin in RMB.

After the ban, some people have stated some peer-to-peer exchanges to get around the ban.The process isn’t easy, however, and the coins are still too volatile to use to exchange money.

Sending money out of China via PayPal in 2019

PayPal is one of the oldest methods for sending money out of China. It is a viable option, but the fees are once again the big issue. There are also many processes involved here, like setting up a separate Chinese PayPal account.

This PayPal account should be linked to your Chinese bank account. You can then send money from your Chinese PayPal to your UK or US PayPal, although there are several steps you need to take to make this happen.

The total fees can be high because you are paying for the international transfer (typically 0.5%-2%) plus the currency conversion.

Sending money out via investing in 2019

A better option is to invest overseas in USD, Euros or Pounds when you are living offshore.  In the same way that ISAs were originally designed for UK nationals living in the UK to save and invest in a tax efficient way, the UK overseas territories like the Isle of Man were originally designed to allow expats to invest whilst they live overseas.

Expats living overseas have options available to them from locations such as Hong Kong and the Isle of Man, which are much cheaper than other options they have, and especially cheaper than incurring the costs of sending money home via one of the aforementioned vehicles.

This is particularly a great option for expats who have Visa and other international cards, because often the premiums can be taken out from RMB and converted to USD or GBP. 

Another advantage of this option is speed. I have helped clients set up accounts in 48-72 hours, and all the documents can be done online.  

Property as a vehicle for getting money out of China in 2019

Many Chinese and expats living in Mainland China are interested in property overseas property in the US, UK and many other countries.  

There are a few currency companies I am aware of that have excellent currency exchange rates, for people who are looking to send money out of China in a lump sum.

Given the fees involved, however, this option is only good for people who have 40,000GBP (about $55,000) or more to send as a lump sum. Using a currency company for monthly investments isn’t a viable option.

I have seen several people buy a property using this method to pay for a deposit on a house.

Getting money out of China for Chinese in 2019

For returnee Chinese with foreign passports, it is often easy to get money out of the country.  Ultimately, China doesn’t allow joint passports.  So returnee Chinese with foreign passports are legally expats, even though they were born in China.

For local Chinese, as mentioned previously, it is possible to send $50,000 worth out of China in a lump sum mechanism.  All such accounts can be done online or via physical application forms, with some of the larger institutions that are available through brokers .

For Chinese people who want to invest more than $50,000, one of the most effective ways is to invest a further $500-$700 a month through a regular savings plan.

The reason why this is effective, is that the money is taken out of RMB and put into a USD account.  Therefore, it seems more like a bill payment, rather than an investment.  It is only when premiums become much higher, than the banks start asking questions and/or the credit or debit card limit has been reached.

With that being said, it is via easier to send money outside of China using Visa or MasterCard, than UnionPay.

The majority of Chinese sending money outside of China are middle-class consumers who have access to these international credit and debit cards.  

Some Chinese people are worried about their information automatically being shared with the Chinese tax authorities, and then rules being applied retrospectively.  In other words, in 2020 the laws are changed to only allow Chinese people to spend $40,000 overseas, and the Chinese authorities apply a retrospective tax to people who used the previously $50,000 allowance.  This is unlikely to be an issue, and some offshore US territories do not share tax information.  

As a final comment, I would say that the situation is different for businesses.  Companies that want to repatriate their capital outside of China can do it using various ways.  It also isn’t simple, but more options exist compared to those options available to individuals. 

Getting money out of South Africa in 2019 

For expats, and locals alike, getting smaller amounts of money out of South Africa is fairly simple.  Just like China, using investments and currency companies is usually OK. However, the annual discretionary allowance, meaning sending more than 1 million Rand out of the country annually is difficult.

Getting money out of Thailand in 2019

Thailand is more liberal than China when it comes to sending money overseas, although rules are always changing.  Smaller amounts are easy.

Any individual, who brings or takes our more than USD20,000 or its equivalent out of or into Thailand needs to declare it.

For sending Thai Baht out of China, using a local Master or Visa card to pay for an investment can make sense, because it looks like a bill payment.

Also, you can send  as much money as you brought into the country, assuming  you have the foreign currency exchange receipts.  Expats on a work permit can export up to 80% of their earnings overseas.

Sending money out of Myanmar/Burma in 2019

In theory you can, but in practice it is difficult to wire money out of the country.  More difficult than China and much more difficult than Thailand or South Africa.

So if you have a local debit or credit card, paying for a USD, Pound or Euro investment is a great way of getting rid of local currency.

Sending money out of Vietnam in 2019

You need a job, and work permit, to send money out of Vietnam, and some banks ask for pay slips and other proofs of employment.

The process isn’t as difficult as in Myanmar, but banking fees can be high.

Sending money out of India in 2019

Banks do allow you to do this, but charges are high. There are RBI limits of $250,000 per year. Due to the fees involved, using a currency company or investment firm makes sense.

Sending money out of Pakistan in 2019

For smaller amounts of money, Western Union is fine.  For bigger amounts of cash, bank transfers and currency companies are better.  I have heard , from other expats, that sending large amounts of money out of Pakistan isn’t easy.

Therefore, using apps and investments to send money out of the country, can also make sense.

Sending money out of Nigeria in 2019

Sending money out of Nigeria isn’t that difficult.  Bank transfers, Wester Union and investments are all possible within the country, and it is possible to do this in a tax efficient way.

Sending money out of Japan in 2019

Sending money out of Japan is surprisingly cheap and easy. TransferWise is a great option in Japan.

Sending money out of Ethiopia in 2019

It isn’t always easy to send money out of Ethiopia.  Once again, therefore, using investments to send money out of the country makes sense.

Sending money out of UAE

Sending money from Dubai or the UAE in general, to the UK, India, the US or any other location is fairly straightforward. Most of the banks, currency companies, apps and investment firms offer different options.

Sending money out of Singapore 

Singapore, like Japan, has TransferWise and other cheap options.  This is a good option if you want to merely send money.  Using Singaporean Dollars to buy USD, Pound or Euro investments is a better option for investing (often cheaper and less tax implications) than sending money home.

Sending money out of Hong Kong

Tencent’s WeChat app is one option in Hong Kong, as well as the usual options discussed in the Singapore section.

Sending money out of Qatar

XE money transfers, Wester Union and other options all exist in Qatar.  As many expats on packages are partly paid outside of Qatar, this can negate this step.

Sending money out of South Korea

South Korea is fairly liberal, although transfers above $10,000 will attract more attention from the authorities. Many expats have reported needing to go to the nearest National Tax Service, and they print out your annual earned income report for you to show at the bank.

Provided there isn’t a mismatch between your income and how much you are sending home, it should be fine. There is a  $50,000/year maximum for people who can’t produce such statements.

Sending money out of the UK

The UK is quite liberal for money transfers.  Anti-money laundering requirements exist, as per international law, but many cheap options exist for transferring to Australia, Spain or any other country.

Potential tax implications of sending money out of countries

The information above will always change over time. Moreover, remember that sending considerable amounts of money to the UK, Australia and some other locations can bring about tax contributions.

For example, if you transfer more than 5,000 Pound Sterling to a UK account, HMRC will be informed. That doesn’t mean anything will happen, but you may need to prove you really were living overseas, in 10 years time, if you keep maintaining  ‘close links’ to your home country.

The Australian tax authorities, and several others, have also indicated some policy changes in this area, in recent years.

The IRS are also informed of payments, especially those above $10,000, sent back to American bank accounts.

Should you save money overseas or back home?

Since the FATCA laws were enacted, it does often make sense for Americans to send money back home.

For most other expats, if you are living overseas, you should invest in a tax-efficient offshore structure.

Can expats invest in isas?

No ISAs are for UK residents only.

Further reading 

  1. Expat investment reviews – savings plans, bonds and UK pensions.

I can afford to buy, but I don’t want to get on the `housing ladder`. Here’s why.

I can afford to buy a house, but I don’t want to buy.  For some, that is an amazing statement.

I come from a culture (the UK) where `an Englishman’s home` is his castle, and people speak about a `housing ladder`.  

China, Singapore and Hong Kong arguably have a bigger cultural obsession with housing.

I am often asked by people I know `why` I don’t want to buy, as if not buying needs justifying.

The main reasons I don’t want to buy is:

  1. I have looked at the figures inside out – sure, sometimes housing beats stock markets.  Some housing markets at certain times will beat stock markets, for example US Housing beat the S&P from 2000-2010 and Australian housing beat the markets for 10 years or so until 1-2 years ago. However, over a lifetime investing (40-50 years) housing has always lagged markets. 
  2. The direct costs are high – that reduces net gains.  Take the UK as an example.  The costs of buying (stamp duty) is charged at 0-12% upfront.  The only way to avoid it is to buy the cheapest houses.  There are also the lawyers and other fees.  The upfront fees, therefore, can be 5% or higher. Then there is the annual fee for owning (known as council tax) which can cost 1%-2% per year. In comparison, you can get access to markets for 0.03% per year.  That isn’t to mention maintenance costs. 
  3. The indirect costs are high – time is money. All those hours spent viewing houses, and renovating the house all add up.  Another indirect cost is your lack of flexibility.  If you can’t accept a pay rise due to your house and not wanting to relocate, that can be a huge cost.  
  4. The risks are relatively high – but this one depends on the market.  If you are buying in a developed country with strong legal systems, the risks aren’t super-high. In most developing countries, the risks are much higher. Remember most countries have confiscated property in the last 40–50 years.
  5. It is an illiquid asset – if I want to sell land or property, it could take 6 months or longer.  
  6. There is a more efficient way to purchase property – Real Estate Investment Trusts (REITS) have the following advantages.
  • They are liquid
  • There are `index fund type` REITS which are cheap
  • Average performance is higher than direct property 
  • They can be held within the same structure as stocks and bonds.  So you can hold 10% REITS for example, within your overall portfolio.  It makes buy, hold and rebalance easier.  

It is true there are benefits to buying property.  Leverage and the ability to use other peoples money. However, leverage works in the other way – leveraged losses and negative equity.  Even with leverage, the only people I have seen beat the average return of the S&P with leverage are professional real estate investors.

It is also true that in some locations, it is cheaper to get a mortgage or buy outright than to rent, but that isn’t the case in that many markets.  Not only have academics found that renting is now cheaper in 65% of US cities, but many markets are so expensive that it is almost impossible to make money on housing.

Take Mainland China as an example. I have several clients who are renting in China. Often buying the same house on mortgage would cost double the rent!  China is an extreme example with rental yields as low as 1%-2%, but it shows you that getting capital gains on a property isn’t automatically profitable if you would have saved money renting. 

Further reading

  1. How to become rich by investing 
  2. Turn off CNBN and Bloomberg